Equity as a Prerequisite for Stable Cooperation in a Public-Good Economy - The Core Revisited

In this paper we explore the relationship between an equitable distribution of the cost shares in public-good provision on the one hand and the core property of an allocation on the other. In particular we show that it is an inhomogeneous distribution of cost shares that motivates some coalition of agents to separate and to block an initially given Pareto optimal allocation which can be interpreted as the outcome of a negotiation process when all agents form a grand coalition. Distributional equity of the individual burdens of public-good contribution is assessed by a specific sacrifice measure (the “Moulin sacrifice”) which is derived from the egalitarian-equivalent concept suggested by Moulin (1987). We also develop a simple core test by which it can be checked whether a given allocation is in the core thus being a possible outcome of a cooperative agreement in the public-good economy.public goods, core, equity, stability of cooperation

The Edgeworth Conjecture in a Public Goods Economy: An Elementary Example

We show by a simple example that in a public goods economy consisting of identical individuals with symmetric Cobb-Douglas preferences the core of the economy does not con-verge to the Lindahl solution when the number of agents goes to infinity. This confirms in an elementary way that the Edgeworth conjecture does not necessarily hold in an economy with a public good.core

Justifying the Lindahl Solution as an Outcome of Fair Cooperation

The Lindahl equilibrium is mostly motivated by a rather artificial price mechanism. Even though the analogy to a competitive market has been emphasised by Lindahl himself his approach does not directly explain the normative ideas, which are behind this concept. In the present paper we therefore show how the Lindahl equilibrium can be deduced from some simple equity axioms that in particular are related to the equal sacrifice principle and a non-envy postulate as norms for distributional equity. Fairness among agents with different preferences is taken into account by considering their marginal willingnesses to pay as virtual prices. In this way it might also become more understandable why the Lindahl solution can be perceived as an outcome of fair cooperation.public goods, Lindahl equilibrium, fairness, equity

Equal Sacrifice and Fair Burden Sharing in a Public Goods Economy

Applying a willingness to pay approach known from contingent valuation in environmental economics, we develop an ordinally based measure for the size of individual sacrifice that is connected with an agent's contribution to a public good. We construct a selection mechanism that picks the unique efficient solution among all allocations that have an equal sacrifice as defined in this way. We show that the solution thus obtained correspond to Moulin’s egalitarian equivalent allocation, conforms to both the ability to pay and the benefit principles, and has much in common with the Lindahl equilibrium.public goods, cooperative solutions, fairness, egalitarian equivalent solutions

EXISTENCE, UNIQUENESS AND SOME COMPARATIVE STATICS FOR RATIO- AND LINDAHL EQUILIBRIA: NEW WINE IN OLD BOTTLES

We present a rigorous, yet elementary, demonstration of the existence of a unique Lindahl equilibrium under the assumptions that characterize the standard n-player public good model. Indeed, our approach, which exploits the aggregative structure of the public good model, lends itself to a transparent geometric representation. Moreover, it can handle the more general concept of the cost-share or ratio equilibrium. Finally, we indicate how it may be ex-ploited to facilitate comparative static analysis of Lindahl and cost share equilibria.Public goods, Lindahl equilibrium, ratio equilibrium.

Existence, Uniqueness and Some Comparative Statics for Ratio- and Lindahl Equilibria: New Wine in Old Bottles

We present a rigorous, yet elementary, demonstration of the existence of a unique Lindahl equilibrium under the assumptions that characterize the standard n-player public good model. Indeed, our approach, which exploits the aggregative structure of the public good model, lends itself to a transparent geometric representation. Moreover, it can handle the more general concept of the cost-share or ratio equilibrium. Finally, we indicate how it may be ex-ploited to facilitate comparative static analysis of Lindahl and cost share equilibria.public goods, Lindahl equilibrium, ratio equilibrium

Innovation Effects of Science-Related Technological Opportunities - Theoretical Considerations and Empirical Findings for Firms in the German Manufacturing Industry -

This paper investigates the innovation effects of science-related technological opportunities. Against the background of theoretical considerations about the interrelation of innovation and the adaptation of external (knowledge) resources, the impacts of technological opportunities stemming from scientific institutions on firms' innovation input and output are empirically analyzed for the German manufacturing industry. The investigations focus on the question whether science-related technological opportunities are used as complements or substitutes in the innovation process. The estimations indicate complementary relationships between firms' innovation input and technological opportunities stemming from scientific institutions. The adaptation of science-related knowledge resources has stimulating effects on the intensity of inhouse R&D. The results for the innovation output effects are ambiguous. On the one hand, empirical evidence for complementary impacts on the realisation of improved products could be found. On the other hand, science-related technological opportunities have no enhancing effects on the probability of realizing new products. Obviously, knowledge from universities and research institutes stimulates the development of new products more indirectly by increasing inhouse capacities and enhancing R&D efficiency.innovation activities, technological opportunities, scientific institutions, manufacturing industry

Technological Opportunities, Absorptive Capacities, and Innovation

The aim of this paper is to analyze the effects of technological opportunities on the innovation activities of firms, depending on their absorptive capacities. The importance and impacts of the ability of firms to use external knowledge sources were inquired especially for external knowledge stemming from scientific research. Using a simple theoretic model, different innovation effects were empirically outlined for the German manufacturing industry for the first time. On the innovation input side, the effects of science-related technological opportunities in combination with absorptive capacities variables are stronger on the intensities as in the estimations without such proxies. Further, the innovation output of firms is positively influenced by the ability to adapt external knowledge efficiently. Firms in the German manufacturing industry with inhouse absorptive capacities and a high importance of scientific knowledge are characterized by higher sales shares of new and improved products and higher probabilities of patent registrations than other firms.

Voting on Public Pensions With Hand and Feet: How Young Migrants Try to Escape From Gerontocracy

Aging changes the political power in a democracy in favor of the elder generations. Consequently, the retirees can extend the pay-as-you-go financed pensions. Under free labor mobility like within the EU, the success of gerontocracy, nevertheless, is restricted by migration of the young generations. This connection between political voting on intergenerational redistribution and voting with the feet is analyzed in a two-country model with overlapping generations. We distinguish between the case in which the young generations‘ migration decision takes its effect on future pensions into account (strategic migration) and the case in which it only reflects differentials in labor income (myopic migration). The paper also pays attention to the implications of common harmonization principles and to the consequences of price discrimination between natives and immigrants.Interregional competition on public pensions; migration; labor mobility; gerontocracy

Government and Social Media: A Case Study of 31 Informational World Cities

Social media platforms are increasingly being used by governments to foster user interaction. Particularly in cities with enhanced ICT infrastructures (i.e., Informational World Cities) and high internet penetration rates, social media platforms are valuable tools for reaching high numbers of citizens. This empirical investigation of 31 Informational World Cities will provide an overview of social media services used for governmental purposes, of their popularity among governments, and of their usage intensity in broadcasting information online.Comment: In Proceedings of the 47th Hawaii International Conference on System Sciences (pp. 1715-1724). IEEE Computer Society, 201